In a dramatic development in the world of cryptocurrencies, HEX token, founded by Richard Heart, was recently withdrawn from Uniswap’s trading platform. Heart, a controversial figure in the crypto space, previously faced litigation from the U.S. Securities and Exchange Commission (SEC) over accusations of selling unregistered securities.
Richard Schueler, known in the crypto community as Richard Heart, has been a significant figure in the realm of cryptocurrencies with three major projects to his name: Hex, PulseChain, and PulseX. The SEC recently sued Heart for allegations of fraud and conducting unregistered offerings of crypto asset securities, which collectively raked in over $1 billion from investors.
Amidst the glitz and glamour of Heart’s affluent lifestyle, it was claimed that a staggering $12 million of the offering proceeds were misappropriated to fund extravagant purchases. Luxury goods such as sports cars, watches, and a lavish 555-carat black diamond known as ‘The Enigma’ were among the items purportedly acquired with the ill-gotten wealth.
The HEX token, in existence since 2019, was touted as the pioneering “blockchain certificate of deposit” offering lofty annual percentage yields (APYs) for token stakers. The SEC claims that Heart and PulseChain infringed upon the antifraud provisions of federal securities laws by seducing investors with tempting incentives and bonuses. One such allure was a staking program that projected a 38% annual return in HEX for staked HEX tokens.
Moreover, the SEC lawsuit indicates that Heart and other insiders engineered “recycling transactions”. These schemes allowed the insiders to gain control over a significant portion of HEX tokens and artificially inflate trading volumes and demand.
Heart’s other projects, PulseChain and PulseX, are also under scrutiny. From July 2021 to April 2022, Heart allegedly raised over $676 million through unregistered offerings related to the PLS and PLSX tokens of PulseChain and PulseX respectively.
The lawsuit’s repercussions have been severe. HEX, PLS, and PLSX tokens’ value took a nosedive after PulseX and PulseChain’s launch due to high fees, liquidity problems, and potential exploit bugs. The SEC lawsuit was a further blow, making PLS and PLSX practically worthless and plummeting HEX’s value about 98.4% below its all-time high.
The price of PulseChain (PLS) is $0.00004465 today with a 24-hour trading volume of $1,676,490.66. This represents a -17.99% price decline in the last 24 hours and a -55.97% price decline in the past 7 days. If you’re looking for the market cap of PulseChain, data is not available today as the circulating supply of PLS tokens is not reported.
The price of HEX (HEX) is $0.00478042 today with a 24-hour trading volume of $6,109,456.39. This represents a -14.07% price decline in the last 24 hours and a -47.74% price decline in the past 7 days. If you’re looking for the market cap of HEX, data is not available today as the circulating supply of HEX tokens is not reported.
As a final measure, the SEC is seeking permanent injunctive relief, disgorgement of ill-gotten gains, prejudgment interest, and civil penalties against Heart and his associated projects. The removal of HEX from Uniswap could be an early signal of the repercussions to come in this ongoing legal battle.
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